Quarterly Report • Aug 27, 2009
Quarterly Report
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OLVI PLC INTERIM REPORT 27 AUG 2009 at 9:00 am
OLVI GROUP'S INTERIM REPORT, 1 JANUARY TO 30 JUNE 2009 (6 MONTHS)
Olvi Group's performance improved significantly during the first half of the year.
January-June in brief:
KEY RATIOS
| 1-6/2009 | 1-6/2008 | Change % |
1-12/2008 | |
|---|---|---|---|---|
| Net sales, MEUR |
119.7 | 110.6 | 8.3 | 222.1 |
| Operating profit, MEUR |
13.2 | 10.3 | 28.6 | 17.5 |
| Gross capital expenditure, |
||||
| MEUR | 10.8 | 20.7 | -47.8 | 43.6 |
| Earnings per share, EUR |
1.00 | 0.79 | 26.6 | 1.22 |
| Equity per share, EUR |
9.28 | 8.64 | 4.4 | 9.07 |
| Equity to total assets, % |
42.7 | 41.1 | 43.3 | |
| Gearing, % |
62.5 | 75.2 | 62.9 |
"Olvi Group's performance in the first half of the year was good. Our earnings improved substantially in Finland, Latvia and Lithuania. Our earnings performance remained good in Estonia and Belarus. Our overall market position remained strong, and Olvi Group's financial position improved", says Lasse Aho, Managing Director of Olvi plc.
SALES VOLUME, NET SALES AND EARNINGS
OLVI GROUP
January to June 2009
Olvi Group's sales from January to June 2009 amounted to 201 (172) million litres. This represents an increase of 29 million litres or 16.7 percent on the previous year. OAO Lidskoe Pivo's sales from January to June amounted to 40 million litres. Domestic sales in the first half of the year declined by 10 million litres, and sales in the Baltic states declined by 4 million litres on the previous year. Intra-Group sales declined by 3 million litres.
The Group's net sales from January to June amounted to 119.7 (110.6) million euro. The improvement on the previous year was 9.1 million euro. Domestic net sales amounted to 49.0 (51.7) million euro. The Baltic subsidiaries generated net sales of 62.7 (66.0) million euro, while the Belarusian company OAO Lidskoe Pivo posted January-June net sales of 14.5 million euro.
Olvi Group's operating profit for January-June stood at 13.2 (10.3) million euro, or 11.0 (9.3) percent of net sales. The operating profit improved by 28.6 percent on the previous year. The parent company Olvi plc posted an operating profit of 4.7 (2.5) million euro, while the operating profit of the Baltic subsidiaries was 7.2 (7.5) million euro. OAO Lidskoe Pivo's operating profit was 1.2 million euro. Olvi Group's profit after taxes in the period under review was 11.5 (8.2) million euro. Earnings per share calculated from the profit belonging to parent company shareholders in the first half of the year stood at 1.00 (0.79) euro per share.
Owing to the seasonal character of the brewing industry, the majority of the fullyear net sales and operating profit is made during the second and third quarters.
April to June 2009
Olvi Group's sales from April to June amounted to 123 (99) million litres. Sales increased by 24 million litres or 23.7 percent. The sales volume of the Belarusian OAO Lidskoe Pivo was 25 million litres. Sales in Finland and the Baltic states were almost on a par with the previous year.
Olvi Group's net sales from April to June amounted to 72.6 (64.8) million euro. Net sales improved by 7.9 million euro or 12.1 percent. OAO Lidskoe Pivo's net sales in the second quarter amounted to 8.9 million euro. Domestic net sales stood at 29.4 million euros, while net sales in the Baltic states amounted to 38.8 million euro.
Olvi Group's operating profit from April to June stood at 10.8 (7.1) million euro. The operating profit increased by 3.7 million euro or 52.2 percent compared to the previous year. The parent company Olvi plc's operating profit in Finland increased by 1.4 million euro, while the aggregate operating profit of the Baltic subsidiaries increased by 1.0 million euro. OAO Lidskoe Pivo's operating profit was 1.4 million euro.
PARENT COMPANY OLVI PLC
January to June 2009
The parent company Olvi plc's sales volume in January-June was 60 (70) million litres. Sales volumes declined in January-June by a total of 10 million litres or 14.2 percent, but 9 million litres of the decline took place already in the first quarter.
According to statistics by the Federation of the Brewing and Soft Drinks Industry, the Finnish beverage market diminished slightly in January-June in all product groups except long drinks. Sales volumes declined substantially in ciders and mineral waters.
Among Olvi plc's product groups, the greatest proportional growth was seen in the sales of long drinks. Olvi plc expanded its product range to juices and spring waters. In April 2009, Olvi plc started co-operation with Vakka-Suomen Panimo Osakeyhtiö concerning the sales and distribution of microbrewery products.
The parent company's exports and tax-free sales have improved well in the first half of the year. The increase in January-June was 31.0 percent. Exports accounted for 4.0 percent of total sales.
The parent company's net sales from January to June stood at 49.0 (51.7) million euro. The decline in net sales took place in January-March, and an improvement of 3.7 percent was seen in April-June.
Olvi plc's first-half operating profit improved substantially. Operating profit in January-June stood at 4.7 (2.5) million euro, which was 9.7 (4.8) percent of net sales. The operating profit increased by 2.2 million euro compared to the previous year. The profitability improvement was made possible by decreased costs, increased production capacity, improved efficiency of operations and successful new products in the long drink and soft drink segments.
April to June 2009
The parent company's sales in April-June 2009 amounted to 37 (38) million litres, almost on a par with the previous year. Net sales stood at 29.4 (28.4) million euro, an increase of 3.7 percent.
Olvi plc's operating profit doubled in April-June, amounting to 3.0 (1.5) million euro.
In June 2009, Olvi plc received the "Translator's Rose" award from the Finnish Association of Translators and Interpreters. The award was granted to honour Olvi plc's genuine interest in co-operating with multilingual communication experts. In Olvi plc's communication projects, the translator is a valuable partner, and the company appreciates the translator's long-time partnership, professional skill and competence accumulated over the years. Olvi's designated values, being Finnish, positive and customer-focused, are strongly present also in the co-operation with translators.
AS A. LE COQ
January to June 2009
The Estonian subsidiary AS A. Le Coq's January-June sales amounted to 58 (68) million litres. The sales declined by 10 million litres, most of which was intra-Group freighted work.
The sales of soft drinks and ciders increased during the first half of the year, while the sales of mineral waters and long drinks declined. The sales of beers declined slightly on the previous year. In January-June, AS A. Le Coq's freighted work for other Group companies declined by 7 million litres on the previous year due to additional capacity acquired for subsidiaries in the other Baltic states.
AS A. Le Coq's market position in the most important beverage groups improved.
The company's net sales from January to June amounted to 33.7 (38.7) million euro, representing a decline of 5.0 million euro or 12.9 percent.
Operating profit in January-June stood at 5.7 (6.7) million euro, which was 17.0 (17.2) percent of net sales. The operating profit decreased by 1.0 million euro compared to the previous year. The decline in earnings was affected by intense price competition in beers.
April to June 2009
AS A. Le Coq's sales in April-June amounted to 35 (40) million litres, a decline of 5.0 million litres or 12.4 percent on the previous year. Second-quarter net sales amounted to 20.6 (23.4) million euro.
The company's operating profit from April to June amounted to 4.3 (4.6) million euro.
A/S CESU ALUS
January to June 2009
In the first half of 2009, the sales of A/S Cesu Alus operating in Latvia totalled 31 (30) million litres. The sales of beer continued to increase, while the sales of ciders and long drinks declined in line with the diminishing total market. During the first half of the year, Fizz cider has become the best-selling cider in Latvia (source: Nielsen). The market share of Fizz cider has reached 44 percent of the Latvian cider market.
Sales of soft drinks were on a par with the previous year.
A/S Cesu Alus's net sales in January–June totalled 16.5 (16.0) million euro, which was 0.5 million euro, or 3.2 percent, more than in the previous year.
Operating profit from January to June stood at 1.1 (0.9) million euro. The operating profit improved by 0.2 million euro compared to the previous year.
April to June 2009
In the April-June period, A/S Cesu Alus's sales increased by 1 million litres or 4.2 percent to 19 (18) million litres. Net sales amounted to 10.6 (10.0) million euro. Net sales improved by 0.6 million euro or 6.2 percent.
A/S Cesu Alus's operating profit also improved clearly in April-June. The operating profit stood at 1.5 (0.8) million euro. The operating profit improvement in A/S Cesu Alus was made possible by a decrease in costs, improved efficiency of logistics and the investment in a new canning line.
AB RAGUTIS
January to June 2009
In the first half of the year, the sales volume of AB Ragutis operating in Lithuania increased to 26 (20) million litres. This represents an increase of 6 million litres or 27.0 percent on the previous year. The sales increase was attributable to beer, the new product group kvass, as well as freighted work for other Group companies. Sales of ciders and long drinks declined in line with the diminishing total market.
AB Ragutis's net sales from January to June amounted to 12.4 (11.3) million euro, representing an increase of 1.1 million euro or 10.4 percent.
AB Ragutis's operating profit in the first half of the year stood at 0.4 (-0.1) million euro. The performance improvement was achieved in the second quarter. This was made possible by good sales development, improved production efficiency and cost cuts.
April to June 2009
AB Ragutis's sales from April to June amounted to 16 (12) million litres. Sales increased by 4 million litres or 32.6 percent. Net sales stood at 7.5 (6.7) million euro, an increase of 0.8 million euro or 11.8 percent.
The company's operating profit improved clearly in April-June. The operating profit stood at 0.7 (0.05) million euro. The operating profit increased by 0.6 million euro.
OAO Lidskoe Pivo
January to June 2009
The sales volume of OAO Lidskoe Pivo operating in Belarus was 40 million litres in January-June 2009, an increase of 2 million litres or 5.6 percent on the previous year. The sales of beer were on a par with the previous year, while the sales of kvass and the sales of products to other Olvi Group breweries increased substantially.
The company's net sales stood at 14.5 million euro, while the January-June operating profit was 1.2 million euro. The operating profit accumulated during the second quarter.
OAO Lidskoe Pivo has deposits denominated in United States dollars, which created
foreign exchange gains. The company's profit before taxes was 2.9 million euro, and after-tax profit for the period was 2.3 million euro.
The company has initiated substantial investments to boost production capacity, increase the level of automation and secure the standard of quality.
OAO Lidskoe Pivo's income statement has been consolidated with Olvi Group as of the beginning of 2009. The company's balance sheet was consolidated at the end of fiscal 2008.
OAO Lidskoe Pivo's sales in the second quarter amounted to 25 million litres, with net sales at 8.9 million euro. The operating profit improved clearly during the second quarter and amounted to 1.4 million euro.
Olvi Group's balance sheet total at the end of June 2009 was 248.8 (218.2) million euro. Equity per share in January-June stood at 9.28 (8.64) euro, an increase of 0.64 euro per share. The equity ratio of 42.7 (41.1) percent improved by 1.6 percentage points on the previous year. The amount of interest-bearing liabilities was 74.4 (70.8) million euro, including current liabilities of 33.3 (45.3) million euro.
During the period under review, Olvi Group's gross capital expenditure amounted to 10.8 (20.7) million euro. The parent company Olvi plc accounted for 2.9 million euro and the subsidiaries in the Baltic states for 4.4 million euro of the total. OAO Lidskoe Pivo's gross capital expenditure in the first half of the year was 3.5 million euro. The largest investments in Finland in 2009 include the extension and development of Olvi plc's pressure and fermentation tank cellar, while the Baltic states will see the acquisition of a bottle washing machine for AS A. Le Coq, an extension to the pressure tank cellar at A/S Cesu Alus, as well as additional cooling capacity at AB Ragutis and A/S Cesu Alus. This year's largest investments in Belarus will include extension of tank capacity to enable sales growth, as well as a product storage building.
The gross capital expenditure also includes purchases made on finance lease.
Research and development includes projects to design and develop new products, packages, processes and production methods, as well as further development of existing products and packages. The R&D costs have been recognised as expenses.
Olvi plc will launch a substantial number of new products at the beginning of September. The range of alcoholic beverages will be expanded to a completely new product group with Olvi Kotikalja 2.2%, which is a genuine traditional home-style ale made of barley and rye malt. The dark-brown malt beverage complements Olvi plc's product range and is a perfect match for many foods. Olvi Kotikalja 2.2% will be available around the year in brown 0.95-litre bottles designed by Harri Koskinen.
Through a co-operation agreement, Olvi plc will start the retail distribution of Prykmestar specialty beers produced by Vakka-Suomen Panimo Osakeyhtiö (VASP). HoReCa sales of VASP's products started already in the spring. Olvi plc cannot produce any similar products because the volume is too small for Olvi's production equipment. VASP's products allow Olvi plc to respond to the increasing demand for specialty beers while improving the offering's attractiveness to customers.
In the autumn, the FIZZ Cooler range will see the introduction of a grenadine-
flavoured light apple cider in 0.5-litre cans. Grenadine gives the beverage a sweet-and-sour taste perfect for the autumn, as well as a beautiful reddish colour.
The autumn will be crowned by OLVI Finnish Feast Beer suitable for any festive occasion. OLVI Finnish Feast Beer will be available in elegant white 0.5-litre cans. The beer is reddish-golden in colour, and its taste is full, slightly roasted and ester-like.
Several non-alcoholic products will also be launched. Olvi Glögg Concentrate in 0.5-litre bottles will open a completely new product group. The mixing ratio will be one part of concentrate and three parts of water. The product will be available from 15 October to 31 December 2009.
TEHO Light Energy Drink will return to the market in 0.5-litre bottles with a new recipe completely free of preservatives.
Donald Duck, the all-time children's favourite, will also return to the market, this time as a mineral water-based childrens' beverage. Donald Duck Strawberry Drink is a sweetened mineral water with a nice red colour coming from natural carrot juice concentrate. The product is a healthier alternative for children's delicacy drinks. Its energy content is 10 kcal/dl.
The autumn's new introduction in mineral waters is the blackcurrant-flavoured KevytOlo juice-mineral water combination. The beverage contains fruit and berry juice concentrates and has a juice content of five percent. KevytOlo Blackcurrant juice and mineral water combines fresh mineral water with the naturalness of juices. Its energy content is 20 kcal/dl.
Olvi plc's new soft drink range introduced in the spring will get two new members in the autumn. OLVI Jaffa and OLVI Cola soft drinks will have new contents in accordance with a lighter recipe. The products are sweetened with fructose and do not contain any artificial sweeteners. All of the family members, OLVI Pineapple, OLVI Grapefruit, OLVI Mixed Fruit, OLVI Jaffa, OLVI Cola and OLVI Apple contain 26 to 32 kcal/dl and are sold in 0.95-litre plastic bottles.
In May, the Estonian AS A. Le Coq expanded its range of ready-made beer mixes with the new Beershake Tequila & Citrus and Beershake Red Berry products in 0.33-litre glass bottles. At the same time, the first pint-size (0.568-litre) can was introduced to the Estonian market with Alexander beer. Alexander is AS A. Le Coq's third most-selling beer and has been part of the range for decades. A new subbrand for ciders, FIZZ Gold, was also launched in May. The product is a cooler made of real wine, and is available in two flavours: FIZZ Gold Vino Rose is made of rosé wine, while FIZZ Gold Vino Bianco is made of white wine. The products contain 6 percent alcohol and are sold in 0.5-litre cans.
AS A. Le Coq reintroduced traditional home-style ale on tap in cafés, restaurants and pubs. Two new near water products were introduced in the Aura Fruit product range in May. Near water products are a healthier alternative to soft drinks. They are sweetened and contain flavouríng.
The Latvian A/S Cesu Alus introduced Latvia's first pint-size can for its Cesu Premium beer. The Beershake Beer + Cola and Beershake Beer + Tequila&Lime products, which were originally launched in January in 0.33-litre glass bottles, were introduced in a mix-pack in the summer. The pack contains two bottles of each flavour. FIZZ ciders Strawberry, Perry and Blueberry were launched in one-litre plastic bottles. Similarly to Estonia, Ulmanlaiku Kvass was brought to taps at cafés and restaurants.
The Lithuanian AB Ragutis introduced Lithuania's first pint-size can for its premium beer Volfas Engelman, which was launched last year. The Real cider brand was complemented with a new flavour Peach. The new long drink brand A.Le Coq G:n was launched with the flavours of Mai Tai, Green Lime and Red Mixer. Similarly to Estonia, Kvass Smetoniska Gira was brought to taps at cafés and restaurants. The wine range saw two new products, the Musu Krasto red and white wines.
No new products were introduced in Belarus during the second quarter.
Olvi Group's average number of personnel in January-June was 2,100 (1,291), 374 (441) of them in Finland, 355 (409) in Estonia, 217 (233) in Latvia, 197 (208) in Lithuania and 957 in Belarus. The Group's average number of personnel increased by 809 employees or 62.7 percent due to OAO Lidskoe Pivo's consolidation with Olvi Group. The number of personnel in Finland and the Baltic states declined by 148 people on the previous year. The total number of personnel at the end of June was 2,220 (1,391).
From April to June 2009, Olvi Group increased its holding in A/S Cesu Alus by 259 shares or 0.13 percent. At the end of June 2009, Olvi Group's holding in AS Cesu Alus was 98.33 percent, in AS A. Le Coq 100 percent, in AB Ragutis 99.57 percent, and in OAO Lidskoe Pivo 51.0 percent.
The economies of the Baltic states are still facing great difficulties. Total production is expected to decline by 14 to 17 percent this year, which will result in a further increase in unemployment. Private consumption will slow down substantially across the entire Baltic region.
The brewing industry market will decline in the Baltic states. As the consumers' purchasing power is declining and inflation is going up, consumption will shift to less expensive products and product groups. Excise tax hikes in Finland may increase private imports from countries with lower excise rates, as well as taxfree sales.
Olvi Group companies aim to retain their good overall market positions across the entire operating area. Substantial investments made in previous year will ensure sufficient capacity and cost-effective production of versatile product ranges and packaging alternatives. We expect Olvi Group's operating profit to improve in 2009 compared to the previous year.
Further information:
Lasse Aho, Managing Director Phone +358 17 838 5200 or +358 400 203 600
OLVI PLC Board of Directors
DISTRIBUTION NASDAQ OMX Helsinki Ltd Key media www.olvi.fi
| STATEMENT OF COMPREHENSIVE INCOME |
|||||
|---|---|---|---|---|---|
| EUR 1,000 |
4-6/ 2009 |
4-6/ 2008 |
1-6/ 2009 |
1-6/ 2008 |
1-12/ 2008 |
| Net sales |
72650 | 64783 | 119730 | 110583 | 222124 |
| Other operating income |
150 | 144 | 483 | 431 | 1005 |
| Operating expenses |
-57618 | -54473 | -98306 | -94073 | -191496 |
| Depreciation and impairment |
-4379 | -3357 | -8710 | -6682 | -14155 |
| Operating profit |
10803 | 7097 | 13197 | 10259 | 17478 |
| Financial income |
61 | 44 | 2144 | 79 | 247 |
| Financial expenses |
-811 | -695 | -2157 | -1277 | -3420 |
| Earnings before tax |
10053 | 6446 | 13184 | 9061 | 14305 |
| Taxes *) |
-845 | -584 | -1697 | -887 | -1631 |
| NET PROFIT FOR THE PERIOD |
9208 | 5862 | 11487 | 8174 | 12674 |
| Other comprehensive income items: |
|||||
| Translation differences related to |
|||||
| foreign subsidiaries TOTAL COMPREHENSIVE INCOME FOR THE |
-1171 | 10 | -5509 | 29 | -15 |
| PERIOD | 8037 | 5872 | 5978 | 8203 | 12659 |
| Distribution of profit: |
|||||
| - parent company shareholders |
8616 | 5854 | 10347 | 8171 | 12684 |
| - minority |
592 | 8 | 1140 | 3 | -10 |
| Distribution of comprehensive profit: |
|||||
| - parent company shareholders |
10154 | 5864 | 7595 | 8200 | 12670 |
| - minority |
-2117 | 8 | -1617 | 3 | -11 |
| Ratios calculated from the profit belonging |
|||||
| to parent company shareholders: |
OLVI GROUP APPENDIX 1
*) Taxes calculated from the profit for the review period.
OLVI GROUP APPENDIX 2
BALANCE SHEET
| EUR 1,000 |
|||
|---|---|---|---|
| 30 Jun 2009 |
30 Jun 2008 |
31 Dec 2008 |
|
| ASSETS | |||
| Non-current assets |
|||
| Tangible assets |
128495 | 111011 | 132028 |
| Goodwill | 10791 | 10676 | 10743 |
| Other intangible assets |
895 | 1039 | 1023 |
| Financial assets available for sale |
288 | 286 | 288 |
| Other non-current assets available for sale Loan receivables and other non-current |
429 | 31 | 429 |
| receivables | 123 | 119 | 350 |
| Deferred tax receivables |
683 | 374 | 1042 |
| Total non-current assets |
141704 | 123536 | 145903 |
| Current assets |
|||
| Inventories | 38839 | 37069 | 33699 |
| Accounts receivable and other receivables |
60246 | 54276 | 48839 |
| Deferred tax receivables |
36 | 0 | 23 |
| Liquid assets |
7983 | 3284 | 15748 |
| Total current assets |
107104 | 94629 | 98309 |
| TOTAL ASSETS |
248808 | 218165 | 244212 |
| SHAREHOLDERS' EQUITY AND LIABILITIES Shareholders' equity held by parent company shareholders |
|||
| Share capital |
20759 | 20759 | 20759 |
| Other reserves |
1092 | 1092 | 1092 |
| Treasury shares |
-222 | -63 | -63 |
| Translation differences |
-2775 | 20 | -23 |
| Retained earnings |
77399 | 67823 | 72339 |
| 96253 | 89631 | 94104 | |
| Minority interest |
10001 | 128 | 11618 |
| Total shareholders' equity |
106254 | 89759 | 105722 |
|---|---|---|---|
| Non-current liabilities |
|||
| Interest-bearing liabilities |
41081 | 25479 | 42361 |
| Interest-free liabilities |
0 | 0 | 4 |
| Deferred tax liabilities |
1459 | 1106 | 1421 |
| Current liabilities |
|||
| Interest-bearing liabilities |
33286 | 45332 | 39840 |
| Accounts payable and other liabilities |
66728 | 56489 | 54864 |
| Total liabilities |
142554 | 128406 | 138490 |
| TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES |
248808 | 218165 | 244212 |
OLVI GROUP APPENDIX 3
CHANGES IN OLVI GROUP'S CONSOLIDATED SHAREHOLDERS' EQUITY
| EUR 1,000 | A | B | C | D | E | F | G | H | I |
|---|---|---|---|---|---|---|---|---|---|
| Shareholders' equity 1 Jan 2008 |
20759 | 857 | 127 | -722 | 108 | -9 | 67932 | 136 | 89188 |
| Payment of dividends | -8291 | -8291 | |||||||
| Transfer of treasury shares Total comprehensive income for the |
659 | ||||||||
| period | 29 | 8174 | 8203 | ||||||
| Change in minority interest | 11 | -11 | 0 | ||||||
| Share of profit belonging to the minority Shareholders' equity 30 |
-3 | 3 | 0 | ||||||
| June 2008 | 20759 | 857 | 127 | -63 | 108 | 20 | 67823 | 128 | 89759 |
| EUR 1,000 | A | B | C | D | E | F | G | H | I |
|---|---|---|---|---|---|---|---|---|---|
| Shareholders' equity 1 Jan 2009 |
20759 | 857 | 127 | -63 | 108 | -23 | 72339 | 11618 | 105722 |
| Payment of dividends | -5287 | -5287 | |||||||
| Acquisition of treasury shares Total comprehensive income for the |
-159 | -159 | |||||||
| period | -2752 | 11487 | -2757 | 5978 | |||||
| Share of profit belonging to the minority Shareholders' equity 30 |
-1140 | 1140 | 0 | ||||||
| June 2009 | 20759 | 857 | 127 | -222 | 108 | -2775 | 77399 | 10001 | 106254 |
A = Share capital B = Share premium account
OLVI GROUP APPENDIX 4
CASH FLOW STATEMENT EUR 1,000
| 1-6/2009 | 1-6/2008 | 1-12/2008 | |
|---|---|---|---|
| Net profit for the period |
11487 | 8174 | 12674 |
| Adjustments to profit for the period |
8157 | 8783 | 18971 |
| Change in net working capital |
-2064 | -12827 | -5282 |
| Interest paid |
-2441 | -1271 | -2959 |
| Interest received |
401 | 55 | 234 |
| Taxes paid |
-806 | -1771 | -3054 |
| Cash flow from operations (A) |
14734 | 1143 | 20584 |
| Capital expenditure |
-9351 | -19990 | -32160 |
| Disposals of fixed assets |
123 | 155 | 245 |
| Cash flow from investments (B) |
-9228 | -19835 | -31915 |
| Increase of share capital |
0 | 0 | 0 |
| Withdrawals of loans |
25861 | 29718 | 78000 |
| Repayments of loans |
-33695 | -3799 | -46965 |
| Acquisition of treasury shares |
-159 | 0 | 0 |
| Dividends paid |
-5278 | -8275 | -8288 |
| Cash flow from financing (C) |
-13271 | 17644 | 22747 |
| Increase (+)/decrease (-) in liquid assets |
|||
| (A+B+C) | -7765 | -1048 | 11416 |
| Liquid assets 1 January |
15748 | 4332 | 4332 |
| Liquid assets 30 June /31 Dec |
7983 | 3284 | 15748 |
| Change in liquid assets |
-7765 | -1048 | 11416 |
OLVI GROUP APPENDIX 5
NOTES TO THE INTERIM REPORT
Olvi Group's interim report for January-June 2009 has been prepared in accordance with IAS 34, Interim Financial Reporting. The accounting policies used for the interim report are the same as those used for the annual financial statements 2008.
The accounting policies are presented in the Annual Report 2008 that was published on 31 March 2009. The information disclosed in the interim report is unaudited.
The interim report information is presented in thousands of euros (EUR 1,000). For the sake of presentation, individual figures and totals have been rounded to full thousands, which causes rounding differences in additions.
The Group has adopted the following new or revised standards in 2009:
IAS 1 (Revised), Presentation of Financial Statements. The Group presents all income and expense items recognised in the financial period in one statement of comprehensive income.
IFRS 8, Operating Segments. The reporting of geographical segment information corresponds to the company's internal reporting.
IAS 23, Borrowing Costs. The Group will start to capitalise borrowing costs in projects that start in 2009 and fulfil the conditions specified in the standard.
IFRS 2, Share-based Payments. Group management is investigating the effects of amendments to the standard.
IFRIC 11, IFRS 2, Group and Treasury Share Transactions. This interpretation does not have any substantial effect on the Group.
SEGMENT INFORMATION
SALES BY GEOGRAPHICAL SEGMENT (1,000 litres)
| 4-6/ | 4-6/ | 1-6/ | 1-6/ | 1-12/ | |
|---|---|---|---|---|---|
| 2009 | 2008 | 2009 | 2008 | 2008 | |
| Olvi Group total |
122928 | 99340 | 201144 | 172298 | 340938 |
| Finland | 37329 | 37572 | 60041 | 69980 | 138155 |
| Estonia | 35131 | 40084 | 57717 | 68260 | 125170 |
| Latvia | 19181 | 18415 | 30946 | 30125 | 58753 |
| Lithuania | 15806 | 11922 | 25699 | 20238 | 44085 |
| Belarus | 24644 | 39926 | |||
| - sales between segments |
-9163 | -8653 | -13185 | -16305 | -25225 |
NET SALES BY GEOGRAPHICAL SEGMENT (EUR 1,000)
| 4-6/ | 4-6/ | 1-6/ | 1-6/ | 1-12/ | |
|---|---|---|---|---|---|
| 2009 | 2008 | 2009 | 2008 | 2008 | |
| Olvi Group total |
72649 | 64783 | 119730 | 110583 | 222124 |
| Finland | 29445 | 28388 | 49007 | 51707 | 106291 |
| Estonia *) |
20641 | 23427 | 33723 | 38728 | 71995 |
| Latvia | 10612 | 9990 | 16480 | 15976 | 31366 |
| Lithuania | 7532 | 6737 | 12449 | 11278 | 23825 |
| Belarus | 8887 | 14468 | |||
| - sales between segments |
-4468 | -3759 | -6397 | -7106 | -11352 |
*) The comparison data for 2007 has been adjusted.
OPERATING PROFIT BY GEOGRAPHICAL SEGMENT (EUR 1,000)
| 4-6/ | 4-6/ | 1-6/ | 1-6/ | 1-12/ | |
|---|---|---|---|---|---|
| 2009 | 2008 | 2009 | 2008 | 2008 | |
| Olvi Group total |
10803 | 7097 | 13197 | 10259 | 17477 |
| Finland | 2990 | 1547 | 4740 | 2521 | 4252 |
| Estonia | 4290 | 4613 | 5725 | 6677 | 11618 |
| Latvia | 1492 | 808 | 1108 | 921 | 1281 |
| Lithuania | 656 | 48 | 382 | -67 | 32 |
| Belarus | 1392 | 1227 | |||
| - eliminations |
-17 | 81 | 15 | 207 | 294 |
| 2. PERSONNEL ON AVERAGE |
1-6/2009 | 1-6/2008 | 1-12/2008 |
|---|---|---|---|
| Finland | 374 | 441 | 431 |
| Estonia | 355 | 409 | 388 |
| Latvia | 217 | 233 | 231 |
| Lithuania | 197 | 208 | 206 |
| Belarus | 957 | 0 | |
| Total | 2100 | 1291 | 1256 |
Employee benefits to management Salaries and other short-term employee benefits to the Board of Directors and Managing Director EUR 1,000
| 1-6/2009 | 1-6/2008 | 1-12/2008 | ||
|---|---|---|---|---|
| Managing Directors |
358 | 568 | 995 | |
| Chairman of the Board |
109 | 105 | 209 | |
| Other members of the Board |
52 | 57 | 109 | |
| Total | 519 | 730 | 1313 |
| 30 Jun 2009 |
|
|---|---|
| Number of A shares Number of K shares Total |
8513276 1866128 10379404 |
| Total votes carried by A shares Total votes carried by K shares Total number of votes |
8513276 37322560 45835836 |
| Registered share capital, EUR 1,000 |
20759 |
The Series A and Series K shares received a dividend of 0.50 euro per share for 2008 (0.80 euro per share for 2007), totalling 5.2 (8.3) million euro. The dividends were paid on 21 April 2009.
| Nominal | value | of | A | and | K | shares, | EUR | 2.00 | |
|---|---|---|---|---|---|---|---|---|---|
| Votes | per | Series | A | share | 1 | ||||
| Votes | per | Series | K | share | 20 |
The shares entitle to equal dividend.
The Articles of Association include a redemption clause concerning Series K shares.
Olvi plc's Board of Directors decided on 26 January 2006 on a share-based incentive scheme for Olvi Group's key personnel.
The share-based bonus scheme is a part of the incentive and commitment scheme for the Group's key personnel and its purpose is to combine the objectives of shareholders and key personnel to improve the company's value.
The scheme includes two vesting periods, the first one extending from 1 January 2006 to 31 December 2007 and the second one from 1 January 2008 to 31 December 2010. The amount of bonuses payable out of the scheme is linked to Olvi Group's net sales and the operating profit percentage in relation to net sales.
The bonuses are payable partially in Olvi plc's Series A shares and partially in cash. The proportion payable in cash covers the taxes and other statutory fees arising from the share-based bonuses. The bonuses for the first vesting period
were paid in April 2008. The shares carry a ban on transferring them within two years of reception.
Any bonuses for the second vesting period will be paid in April 2011. 50 percent of the shares received as bonus for the second vesting period may be transferred after one year of reception, and 100 percent after two years of reception. The right to dividends begins when the shares are transferred to the key employees' book-entry accounts.
On the basis of this incentive scheme, a total of 48,000 Olvi plc Series A shares may become payable in 2011 for the second vesting period if the targets are achieved in full.
The target group of the scheme currently includes 21 key employees. No accounting entries associated with the 2008-2010 vesting period were recognised in January-June 2009.
Olvi Group has no warrants or options.
On 7 April 2009, the General Meeting of Shareholders of Olvi plc decided to authorise the Board of Directors of Olvi plc to decide on the acquisition of the company's own shares using distributable funds. The authorisation is valid for one year starting from the General Meeting and covers a maximum of 245,000 Series A shares.
On 29 May 2009, on the basis of the authorisation granted by the General Meeting, the Board of Directors of Olvi plc decided to acquire a maximum total of 10,000 of the company's own Series A shares. In compliance with the rules of the stock exchange and guidelines concerning treasury shares of a listed company, the shares were acquired through public trading on Nasdaq OMX Helsinki Ltd at the current market price at the time of acquisition. The acquisition was carried out between 8 and 23 June 2009. 10,000 shares were bought at an average price of 15.96 euro per share. The total purchase price was 159 thousand euro.
Between January and June 2009, Olvi plc's Board of Directors has not exercised its authorisation to transfer the company's own Series A shares granted by the General Meeting.
Olvi plc previously held 2,400 Olvi plc Series A shares, which means that the company held a total of 12,400 Series A shares at the end of June 2009. The total purchase price of treasury shares was 222 thousand euro.
Treasury shares held by Olvi plc represent 0.12 percent of the share capital and 0.03 percent of the aggregate number of votes. The treasury shares represent 0.15 percent of all Series A shares and associated votes.
| 7. NUMBER OF SHARES *) |
1-6/2009 | 1-6/2008 | 1-12/2008 |
|---|---|---|---|
| - average |
10376011 | 10359791 | 10368444 |
| - at end of period |
10367004 | 10377004 | 10377004 |
*) Treasury shares deducted.
| 1-6/ | 1-6/ | 1-12/ | |
|---|---|---|---|
| 2009 | 2008 | 2008 | |
| Trading volume of Olvi A shares |
907628 | 971893 | 1622708 |
| 3DJH RI | ||
|---|---|---|
| Total trading volume, EUR 1,000 |
13571 | 23988 | 35436 |
|---|---|---|---|
| Traded shares in proportion to |
|||
| all Series A shares, % |
10.7 | 11.4 | 19.1 |
| Average share price, EUR |
15.38 | 24.45 | 20.82 |
| Price on the closing date, EUR |
15.9 | 23.5 | 15.59 |
| Highest quote, EUR |
17.9 | 27 | 27 |
| Lowest quote, EUR |
12.8 | 20 | 12.5 |
| Book | entries | Votes | Shareholders | ||||
|---|---|---|---|---|---|---|---|
| qty | % | qty | % | qty | % | ||
| Finnish total |
8401577 | 80.94 | 42886273 | 93.56 | 6932 | 99.4 | |
| Foreign total |
231942 | 2.23 | 1203678 | 2.63 | 34 | 0.5 | |
| Nominee-registered | |||||||
| (foreign) total |
1000 | 0.01 | 1000 | 0.00 | 1 | 0.0 | |
| Nominee-registered | |||||||
| (Finnish) total |
1744885 | 16.81 | 1744885 | 3.81 | 6 | 0.1 | |
| Total | 10379404 | 100.00 | 45835836 | 100.00 | 6973 | 100.0 | |
| Series | Series | |||||
|---|---|---|---|---|---|---|
| K | A | Total | % | Votes | % | |
| 1. Olvi Foundation | 1181952 | 421286 | 1603238 | 15.45 | 24060326 | 52.49 |
| 2. Hortling Heikki Wilhelm *) 3. The Heirs of Hortling Kalle |
450712 | 85380 | 536092 | 5.16 | 9099620 | 19.85 |
| Einari | 93552 | 12624 | 106176 | 1.02 | 1883664 | 4.11 |
| 4. Hortling Timo Einari 5. Skandinaviska Enskilda Banken, nominee |
82912 | 17304 | 100216 | 0.97 | 1675544 | 3.66 |
| reg. | 1069908 | 1069908 | 10,31 | 1069908 | 2.33 | |
| 6. Hortling-Rinne Marit 7. Nordea Bank Finland plc, nominee |
51144 | 1050 | 52194 | 0.50 | 1023930 | 2.23 |
| register 8. Ilmarinen Mutual Pension Insurance |
566496 | 566496 | 5.46 | 566496 | 1.24 | |
| Company | 515748 | 515748 | 4.97 | 515748 | 1.13 | |
| 9. Autocarrera Oy Ab | 221891 | 221891 | 2.14 | 221891 | 0.48 | |
| 10. Kamprad Ingvar | 205000 | 205000 | 1.98 | 205000 | 0.45 | |
| Others | 5856 | 5601589 | 5607445 | 54.02 | 5718709 | 12.49 |
| Total | 1866128 | 8513276 | 10379404 | 101.98 | 45835836 | 100.45 |
*) The figures include the shareholder's own holdings and shares held by parties in his control.
| 11. | PROPERTY, | PLANT | AND | EQUIPMENT | ||
|---|---|---|---|---|---|---|
| EUR | 1,000 | |||||
| 1-6/2009 | 1-6/2008 | |||||
| Increase | 10721 | 20288 |
| Decrease | -2415 | -323 | ||
|---|---|---|---|---|
| Total | 8306 | 19965 | ||
| 12. CONTINGENT EUR 1,000 |
LIABILITIES | 30 Jun 2009 |
30 Jun 2008 |
31 Dec 2008 |
| Debts for which Loans from financial institutions |
mortgages have |
been given |
as collateral |
|
| - for own commitments |
0 | 0 | 1594 | |
| - for others |
0 | 0 | 0 | |
| Pledges and contingent |
liabilities | |||
| - for own commitments |
6651 | 1134 | 6227 | |
| - for others |
810 | 0 | 5 | |
| Leasing liabilities: |
||||
| Due within one year |
535 | 758 | 834 | |
| Due within -1 to 5 |
years | 738 | 1051 | 1055 |
| - Due in more than |
5 years |
0 | 0 | 0 |
| Total leasing |
liabilities | 1273 | 1809 | 1889 |
| Package liabilities |
8898 | 6109 | 6402 | |
| Other liabilities |
1980 | 2480 | 1980 |
Equity to total assets, % = Shareholders' equity held by parent company shareholders + minority interest/100 * balance sheet total – advances received
Earnings per share = Profit belonging to parent company shareholders / Average number of shares during the period, adjusted for share issues
Equity per share = Shareholders' equity held by parent company shareholders / Number of shares at end of period, adjusted for share issues
Gearing, % = Interest-bearing debt – cash in hand and at bank / Shareholders' equity held by parent company shareholders + minority interest
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